Posted 9/23/2022 16:12 (#9858025 - in reply to #9857958) Subject: RE: Can grains bounce back if outside markets continue to struggle?
There are two economic factors in commodity pricing. You have the microeconomic factors in which price is influenced by local market conditions that influence basis. Then you have the macroeconomic factors such as currency valuation of importing and exporting countries. If world stagflation becomes severe then commodities will adjust their price down accordingly. We are experiencing high inflation and on the brink of stagflation which is kind of like having a severe chest cold before we get pneumonia. Unfortunately, commodities cannot "cost push" to absorb inflationary input costs. Pretty depressing post huh. https://seekingalpha.com/article/4496845-inflation-vs-stagflation